Situated prominently in the Asia-Pacific, with a GDP of $1 trillion, the country of Indonesia is promoting itself as politically stable, backed by sound macroeconomic policy, and having a young demographic (50% of citizens are under the age of 30).
Although it has long relied on tourism for its economy, a new ad campaign is urging foreigners to invest.
Politically stable or no, this country's reputation for corruption lingers despite investment opportunities. If you're not ready to dive headfirst into the Pacific, dip your toes by investing in the many American companies who have expanded into the archipelago.
When a Starbucks
You can't walk down the main drag in Kuta or Monkey Forest Road in Ubud without stumbling across a man on a horse. The official Ralph Lauren
In 2009, Ralph Lauren Polo bought back its license from Dickson Corporation, a Hong Kong-based company. The brand is now wholly owned in Asia-Pacific (except Japan and South Korea). While the details of the Indonesian arrangement are difficult to pin down, Ralph Lauren is exploding in Asia overall, with net revenues up from $464 million in 2009 to $658 million in 2010.
It's a gas
The tide is out on this stock
When you name a company after something that means "liquid, mercurial, and quick-changing," you're asking for trouble. If you're a surfer, you know Quiksilver
The stock, which opened at $25 in 1990, never rebounded from the 2008 crash. While the current $4 price tag may be tempting, your investment would be better spent on a jar of board wax.
The Foolish bottom line
While Indonesia may be promoting itself as a country with a stable government, that government has yet to fully tackle the issues that have kept investors away in the past. Simply put: The future has not yet arrived for the archipelago.
As I mentioned above, less risky than investing directly in Indonesia is adding stocks to your portfolio with a strong presence in the Asia-Pacific market. Several of these companies are listed in this special free report, "3 American Companies Set to Dominate the World," which includes the top three stocks for the emerging market. Download a copy today -- it's free for Fools.
Think I'm wrong about Indonesia? Hate the Starbucks in Ubud? Love your Quiksilver shorts? Let me know below.